A STUDY OF COMPARATIVE ANALYSIS OF AGRICULTURAL LOAN & FARMERS FEEDBACK WITH REFERENCE TO SHREE BHAUSAHEB THORAT AMRUTVAHINI CO-OPEARATIVE BANK GHULEWADI, SANGAMNER

Abstract

Rural indebtedness is an age-old problem in India. In the nineteenth century, commercial banking was non-existent in rural areas, and farmers were completely in the hands of usurious moneylenders. Starting from the days of British rule, the central government has been striving to expand institutional lending to the rural agricultural sector. In recent decades, efforts in this direction have intensified and today, there is a vast network of institutions providing credit for agriculture. One of the first steps taken by the Government of India towards addressing the problem was the establishment of co-operative credit societies. The Co-operative Credit Societies Act (1904) was passed to provide cheap and cost-effective financial services to farmers and attempts were made thereafter to widen the co-operative movement. The Maclagan Committee (1915) and the Royal Commission of Agriculture in India (1928) focused on the expansion of co-operatives in the country. The RBI Act, 1934, made provisions to establish an Agriculture Credit Department in the bank and extend refinancing facilities to the co-operative credit system. However, there was a slowdown in the co-operative movement in subsequent years, as a large number of co-operative institutions were found to be saddled with the problem of frozen assets, because of heavy over dues in repayment.